Daniel Wesson, Founder and CEO of The Post Workspaces, outlined the financial value coworking operators provide landlords through lease stability and turnover cost avoidance.

Using a 16,000 square foot space example at $25/SF, Wesson calculated landlord costs for operator departure including $400,000 in lost rent during 9-month absorption and 3-month buildout periods, $1.52M in tenant improvements at $95/SF, and $160,000 in broker commissions, totaling over $2M.

Wesson positioned coworking operators' typical 10-year lease commitments as significantly more valuable than traditional tenants' 3-5 year deals, enabling landlords to amortize tenant improvement costs over longer periods while avoiding loan covenant violations and distressed asset perceptions associated with prominent vacancies.